Good Times Restaurants Inc.

Hello, everyone. Thank you for joining us and welcome to the Good Times Restaurants Incorporated Q3 2026 earnings call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. To withdraw your question, press star 1 again. I will now hand the call over to Keri August, Chief Accounting Officer. Please go ahead.

Good afternoon, ladies and gentlemen. and welcome to the Good Times Restaurants Inc. Fiscal 2026 Third Quarter Earnings Call. I am Keri August, the company's Chief Accounting Officer. By now, everyone should have access to the company's earnings release, which is available in the investor section of the company's website. As a reminder, a part of today's discussion will include forward-looking statements within the meaning of federal securities laws. These forward-looking statements are not guarantees of future performance and therefore you should not put undue reliance on them. These statements involve known and unknown risks, which may cause the company's actual results to differ materially from results expressed or implied by the forward-looking statements. Such risks and uncertainties include, among other things, the market price of the company stock prevailing from time to time, the nature of other investment opportunities presented to the company, the disruption to our business from pandemics and other public health emergencies, the impact of staffing constraints at our restaurants, the impact of supply chain constraints and inflation, the uncertain nature of current restaurant development plans and the ability to implement those plans and integrate new restaurants, delays in developing and opening new restaurants because of weather, local permitting, or other reasons, increased competition, cost increases or ingredient shortages, general economic and operating conditions, risks associated with our share repurchase program, risks associated with the acquisition of additional restaurants, adequacy of cash flows, and the cost and availability of capital or credit facility borrowings to provide liquidity, changes in federal, state, or local laws and regulations affecting our restaurants, including wage and tip credit regulations, and other matters discussed under the risk factor section of Good Time's annual report on Form 10-K for the fiscal year ended September 30, 2025, and other reports filed with the SEC. During today's call, we will discuss non-GAAP measures, which we believe can be useful in evaluating our performance. The presentation of this additional information should not be considered in isolation or as a substitute for results prepared in accordance with GAAP and reconciliation to comparable GAAP measures available in our earnings release. And now I would like to turn the call over to our Chief Executive Officer, Ryan Zink.

Thank you, Keri, and thank you all for joining us today. It is exciting to report the shift of good times same store sales to positive year over year. What is equally encouraging is that this positive trend has continued on into the fourth fiscal quarter. As I mentioned on last quarter's call, we have been seeing success with a test of a $2 promotional price for our Bambinos, which are simple cheeseburger sliders with sauce and pickles. We expanded this system wide test beginning in June and experienced same store sales in the mid single digits during the June fiscal month. Beyond that, we saw a combination of sales, average check and transaction growth during both fiscal June and fiscal July on a same store basis. Although the promotion was originally planned to be a summer promotion, its success has resulted in us considering expanding the length of the $2 pricing beyond its originally intended end. The promotion hits on real value, the guest's power to choose how much they want to eat, and it simply being a fun eating experience. It also is a different format than our large burgers, and so while there is certainly some cannibalization, there are distinct differences in products that prevent interchanging bambinos with, say, a deluxe cheeseburger, or modifying the bambino to be equivalent to that item. The year-over-year change in average check indicates that in spite of the significant opt-in into our Bambinos, which have become the largest single burger item purchased, our guests are supplementing those purchases with other items. Although we have a product calendar including seasonal favorites and fresh news scheduled throughout the next quarter, we are intent on consistent execution and increasing the friendliness and hospitality our guests experience, whether in the drive-through, at an outdoor walk-up window, or in one of our few restaurants that have a lobby with indoor dining. Bad Daddy's sales were not as strong, and we continued to develop new limited-time and permanent menu items to reach our guests. Our Smashadilla Burger in the month of May was a huge success, easily the best-selling individual limited-time burger we have ever launched. We are currently featuring the Big Dill in August, and have monthly drops planned out for the balance of the calendar year, including new items and the return of a couple of fan favorites. In addition to upcoming monthly drops, during the first quarter of fiscal 2027, we expect to add a sampler platter to the core menu, the first such item in Bad Daddy's history. Additionally, we expect to add a new Power Bowl to the core menu as we reintroduce ahi tuna to Bad Daddy's. an item that was last part of our core menu in 2019. As discussed in last quarter's call, we are expanding our team member training and retraining with the use of our new learning management system, as we believe improved salesmanship is key to improving both sales and traffic. During the quarter, we paid down the balance of our revolving credit facility and ended the quarter with a strong cash balance and approximately $300,000 in seller finance debt related to the June 2024 acquisition of One Good Times Restaurant. I will now turn the call back over to Keri for a review of our performance during the quarter.